Energy; creating the Well Repurposing Act; defining terms; Corporation Commission; Department of Environmental Quality; effective date.

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ENGROSSED HOUSE
BILL NO. 3173 By: Archer, Luttrell, Waldron,
Alonso-Sandoval, Hefner,
Deck, and Menz of the House

and

Jech of the Senate

An Act relating to energy; creating the Well
Repurposing Act; defining terms; allowing Corporation
Commission or the Department of Environmental Quality
to authorize certain conversion of particular oil and
gas wells; authorizing the establishment of fees and
financial assurance; requiring certain agreement be
in place; making certain distinction for well used
for energy storage or geothermal energy development;
requiring plugging and abandonment of wells if
storage operations cease; authorizing the
promulgation of rules; providing for codification;
and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 950 of Title 52, unless there is
created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Well
Repurposing Act".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 951 of Title 52, unless there is
created a duplication in numbering, reads as follows:

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As used in the Well Repurposing Act:
1. "Energy storage" means the ability to capture energy sources
at one time for use at a later time;
2. "Geothermal energy development" means the development of
geothermal resources; and
3. "Geothermal resources" means the natural heat of the earth
in excess of two hundred fifty degrees (250°) Fahrenheit, or the
energy, in whatever form, below the surface of the earth present in,
resulting from, created by, or that may be extracted from this
natural heat in excess of two hundred fifty degrees (250°)
Fahrenheit, and all minerals in solution or other products obtained
from naturally heated fluids, brines, associated gases and steam, in
whatever form, found below the surface of the earth, but excluding
oil, hydrocarbon gas and other hydrocarbon substances, and excluding
the heating and cooling capacity of the earth not resulting from the
natural heat of the earth in excess of two hundred fifty degrees
(250°) Fahrenheit, as may be used for the heating and cooling of
buildings through an onsite geo-exchange heat pump or similar onsite
system.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 952 of Title 52, unless there is
created a duplication in numbering, reads as follows:
Either the Corporation Commission or the Department of
Environmental Quality (DEQ) may authorize the conversion of an

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orphaned or abandoned oil or gas well into a facility that provides
or supports energy storage or geothermal energy development. When
authorizing such a conversion, either the Commission or DEQ may
establish fees and financial assurance requirements specific to the
energy storage or geothermal development uses. Activities
authorized pursuant to the Well Repurposing Act shall not commence
until a new written surface damage agreement with the surface owner
of record is executed pursuant to Sections 318.2 through 318.9 of
Title 52 of the Oklahoma Statutes.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 953 of Title 52, unless there is
created a duplication in numbering, reads as follows:
A. An orphaned or abandoned oil or gas well that is authorized
by either the Corporation Commission or the Department of
Environmental Quality (DEQ) pursuant to the Well Repurposing Act to
be used for energy storage or geothermal energy development and that
is actively operated for energy storage or geothermal energy
development shall not be considered an orphaned or abandoned well
and shall be considered a well that is being used for beneficial
purposes.
B. If an orphaned or abandoned oil or gas well authorized for
energy storage or geothermal energy development ceases storage
operations or geothermal energy development for twelve (12) months

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or longer, the well shall be plugged and abandoned pursuant to state
law and rules issued by either the Corporation Commission or DEQ.
C. The Commission and DEQ may promulgate rules to implement the
provisions of this act.
SECTION 5. This act shall become effective November 1, 2026.
Passed the House of Representatives the 16th day of March, 2026.

Presiding Officer of the House
of Representatives

Passed the Senate the _____ day of __________, 2026.

Presiding Officer of the Senate